Paperwork Reduction Act Applications

FEDERAL TRADE COMMISSION

Paperwork Reduction Act Applications

AGENCY: Federal Trade Commission.

ACTION: Notice of application to OMB under the Paperwork Reduction Act

(44 U.S.C. 3501-3520) for clearance of information collection

requirements contained in twenty-four regulations issued or enforced by

the Commission. The Commission is also applying to OMB for clearance of

information collection requirements imposed during the performance of

administrative or procedural tasks.

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SUMMARY: The FTC is seeking OMB clearance for provisions of several

regulations, issued or enforced by the Commission, that contain or may

contain requirements for the collection of information under the

Paperwork Reduction Act (``PRA''). The Paperwork Reduction Act has been

amended to redefine ``collection of information'' to include

``disclosure to third parties or the public.'' This amendment serves to

overturn the Supreme Court decision in Dole v. United Steelworkers of

America, 494 U.S. 26 (1990), which held that such disclosures were not

subject to the PRA.

In light of the amendment, the FTC is seeking to modify current OMB

clearances by revising its estimates of burdens to include provisions

requiring disclosures to consumers or other third parties. The FTC is

also seeking approval for other disclosure requirements contained in

rules that do not have current OMB clearance. Further, some requests

for clearance include recordkeeping and reporting requirements.

The FTC is also seeking OMB clearance for information collection

requests imposed during the performance of administrative or procedural

tasks. This information is submitted voluntarily to the Commission by

persons who wish to do business with or receive some benefit from the

agency. Because of the limited burden imposed, these requests have been

combined into a single item. See item number 25, infra.

Expansion of the PRA to include disclosure requirements has

substantially increased the reportable burden hours attributable to the

regulations enforced by the Commission. Disclosure requirements

specifically mandated by Congress account for much of this increase. Of

the twenty-four regulations addressed by this notice of application,

eleven entail burden estimates associated with statutorily required

disclosure provisions. For example, the Truth-in-Lending, Textile Act,

and Fair Packaging Regulations all involve large burden estimates,

totaling approximately 69 million burden hours.

[[Page 44350]]

Much of this burden reflects statutory provisions that require the

disclosure of such basic consumer information as the annual percentage

interest rate charged on loans, the composition of clothing and other

textile items, and the size and content of packaged products. While the

burden imposed on any individual party is often quite small (sometimes

measured in seconds), the number of affected parties is often very high

(sometimes measured in millions), and the total burden is therefore

large. See e.g., the Regulations implementing the Equal Credit

Opportunity Act, the Electronic Fund Transfer Act, and the Consumer

Leasing Act.

Additionally, the burden estimates in this application are larger

than in the past because the Commission is seeking clearance for

certain statutory recordkeeping and reporting requirements that were

not previously submitted to OMB. Examples include the regulations under

the Textile, Wool, and Fur Acts, totaling approximately 1,500,000

burden hours.

At this time, the Commission is seeking clearance for all statutory

mandated ``collections of information'' contained in its rules.

Individual Supporting Statements that detail each burden estimate and

affected entities have been provided to OMB for review. Copies of these

Supporting Statements may be obtained in the Public Reference Section,

Room 130, Federal Trade Commission.

DATES: Comments on this application must be submitted on or before

September 25, 1995.

ADDRESSES: Send comments both to the Office of Information and

Regulatory Affairs, Office of Management and Budget, New Executive

Office Building, Room 3228, Washington, DC 20503, ATTN: Desk Officer

for the Federal Trade Commission, and to the Office of the General

Counsel, Federal Trade Commission, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Elaine W. Crockett, Attorney, Office of General Counsel, Federal Trade

Commission, Washington, DC 20580 (202)-326-2453.

SUPPLEMENTARY INFORMATION:

The following rules will be affected:

1. The Games of Chance Rule, 16 CFR part 419, establishes both

recordkeeping and disclosure requirements for food and gasoline

retailers in conducting and advertising games of chance. The Rule

requires that games promoters retain records showing compliance with

certain provisions, and identify winners, prizes, and number of game

pieces. The recordkeeping requirements assist in the enforcement of the

Rule.

The Rule also requires that games promoters disclose the odds-of-

winning and other prize information in broadcast and print

advertisements. Promoters must also post a winners' list, containing

the names and addresses of winners, the prizes won, and the number of

game pieces. The disclosure requirements assist customers in

determining both the likelihood of winning prizes and the legitimacy of

the game.

Estimate of Information Collection Burden. The FTC has current OMB

approval of 4,500 hours relating to the Rule's recordkeeping provisions

(control number 3084-0067). The FTC is seeking approval to add 3,750

burden hours relating to disclosure requirements, for a total burden of

8,250 hours.

Approximately 30 independent firms contract to conduct an average

of 50 promotions per year. Most of these firms already calculate the

information required by the Rule in the ordinary course of business in

order to determine the contract price to charge the client for the game

and to protect the integrity of the game if it is challenged by a

private legal action. Accordingly, the FTC estimates that the

additional burden of disclosing this information to third parties is

approximately 2.5 hours per promotion, for an additional total burden

of 3,750 hours.

Disclosures: Approximately 30 game promoters conduct an average of

50 games per year at an average burden of 2.5 hours.

2. The Funeral Rule, 16 CFR part 453, prohibits as unfair or

deceptive acts or practices a variety of misrepresentations and other

practices in the sale of funeral goods and services. The Rule requires

funeral providers to give to consumers lists that display prices for

individual funeral goods and services (such as the price for embalming

or the price for use of funeral home facilities during the funeral

ceremony) and a statement showing the items that were actually

purchased by the consumer. The price lists and statements also contain

several disclosures about basic funeral-related legal requirements. The

disclosure requirements enable consumers to make reasoned purchasing

decisions.

Funeral providers must also retain copies of the price lists and

the ``statements of goods and services selected'' for a one-year

period. These recordkeeping requirements assist the Commission in the

enforcement of the Rule.

Estimate of Information Collection Burden. The FTC has current OMB

approval for 21,000 hours relating to recordkeeping provisions (control

number 3084-0025). The FTC seeks to modestly adjust the recordkeeping

burden estimate to 22,300 hours and to add 54,050 burden hours relating

to disclosure requirements, for a total burden of 76,350 hours.

The recordkeeping estimate is consistent with the 1988 estimate for

recordkeeping hours. Much of this information is already kept during

the ordinary course of business for tax purposes or other business

reasons. While the precise amount of time needed to retain the records

required by the Rule would vary from one funeral provider to another,

the incremental time attributed to the Rule should not exceed an

average of one hour per funeral provider per year.

The disclosure estimate is based on the amount of time required to

update price lists as services or prices change. This amount of time

would also vary from one funeral provider to another; however, the FTC

estimates that an average of 2 hours per funeral provider per year

would be necessary to comply with these disclosure requirements.

Recordkeeping: Approximately 22,300 funeral providers retain

required records at an average burden of 1 hour per year. Disclosures:

Funeral providers disclose required information to customers at an

average burden of 2 hours per year.

3. The Equal Credit Opportunity Act (``ECOA''), 15 U.S.C. 1691 et

seq., prohibits discrimination in the extension of credit on the basis

of sex, marital status, race, color, religion, national origin, age,

derivation of income from a public assistance program, or good faith

exercise of any right under the Consumer Credit Protection Act.

Regulation B, 12 CFR part 202, promulgated by the Board of Governors of

the Federal Reserve System, implements the ECOA. Among other things,

Sec. 202.12 of Regulation B requires creditors to retain records

relating to consumer credit applications for 25 months, and records of

business credit applications for 12 months. Section 202.13 of

Regulation B requires creditors that receive mortgage credit

applications to record the applicant's race or national origin, sex,

marital status, and age. These requirements assist in enforcement of

the Act and implementing Regulation.

Regulation B also has two primary disclosure provisions, both of

which are statutorily required. First, creditors are required to

provide applicants with information about adverse credit actions. 15

U.S.C. 1691(d). Second, creditors are required to provide notification

to mortgage credit

[[Page 44351]]

applicants concerning appraisal reports. 15 U.S.C. 1691(e). These

disclosure requirements assist consumers in understanding their rights

under the ECOA. They also assist the Commission in detecting unlawful

discrimination.

Estimate of Information Collection Burden. The FTC has current OMB

approval for 1,004,000 hours relating to recordkeeping provisions and

requirements to collect information about an applicant's race/national

origin, sex, age, and marital status (control number 3084-0087). The

FTC is seeking approval to add 13,400,000 hours relating to disclosure

requirements, for a total burden of 14,400,000 hours.

In 1988, the FTC estimated Regulation B's recordkeeping burden to

be 1,000,000 hours. At that time, the FTC also allocated 4,000 hours to

collecting information about race/national origin, sex, age, and

marital status. The FTC is now recalculating the burden estimate for

this requirement. The credit industry has experienced significant

growth in recent years and the FTC now estimates that approximately

4,000 creditors are subject to this requirement and that approximately

4 million credit applications are affected by this requirement. Because

Regulation B contains a model form that creditors may use to collect

the information, staff estimates that the burden associated with this

recordkeeping requirement is no more than one minute for each

application for a burden total of 66,700 hours.

The disclosures which account for the additional hours are all

specifically mandated by the ECOA. Appoximately 1 million creditors are

subject to the requirement to provide notice of adverse credit action

and 200 million accounts are covered by this requirement. Because the

Regulation provides model forms for these notices, the burden of

providing notice of adverse action is estimated to be 4 minutes for

each application, for a burden total of 13.3 million hours.

The other disclosure requirement under Regulation B involves

providing appraisal reports to consumers. The FTC estimates that 4,000

creditors and 4 million mortgage credit applications are subject to

this requirement. Because creditors have the option to include the

required notice on other forms that would be provided to the consumer

during the ordinary course of business, the additional burden of making

this disclosure is estimated to be 15 seconds for each application, for

a total burden estimate of 16,666 hours.

Disclosures: Approximately 4,000 mortgage credit firms collect

information about approximately 4 million credit applications at a

burden estimate of 1 minute per collection. Approximately 1 million

credit firms provide notices of adverse action to approximately 200

million accounts per year at an average burden estimate of 15 seconds

per notice. Approximately 4,000 mortgage credit firms provide notices

concerning approximately 4 million applications at an average burden of

15 seconds per notice.

4. The Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq.

(``EFTA''), requires accurate disclosure of the costs, terms and rights

relating to electronic fund transfer (EFT) services to consumers.

Regulation E, promulgated by the Board of Governors of the Federal

Reserve System, implements the EFTA. Regulation E contains several

disclosure requirements relating to the terms and conditions of

electronic fund transfers services. For example, among other

disclosures, Regulation E requires financial institutions to (1) make

initial disclosures to a customer about the terms and conditions of

electronic fund transfer accounts; (2) deliver written notices

concerning changes in certain terms or conditions in the customer's

account; and (3) send periodic statements to customers concerning any

account to or from which electronic fund transfers can be made. The

disclosure requirements of Regulation E assist consumers in assessing

the costs and terms of EFT services.

The vast majority of Regulation E's disclosure requirements are

expressly mandated by the EFTA. See, e.g., consumer liability for

unauthorized use, 15 U.S.C. 1693g; initial disclosures, 15 U.S.C.

1693c(a); and documentation of transfers and receipts.

Estimate of Information Collection Burden. The FTC has current OMB

approval for 500,000 hours relating to recordkeeping provisions

(control number 3084-0085). The FTC is seeking approval to add

20,000,000 burden hours relating to disclosure requirements, for a

total new burden of 20,500,000 hours.

Regulation E contains a wide variety of disclosure requirements.

The number of regulated entities and the estimated amount of time

necessary to comply with each requirement varies widely according to

the specific provisions of each requirement. As stated above, the

majority of these disclosures are statutorily required. It is also

extremely difficult to quantify precisely the number of entities and

the number of transactions affected by these requirements. In recent

years a large number of additional entities subject to Regulation E

have entered the market. Thus, the burden hours discussed below reflect

the increase in additional entities covered by the Regulation.

Disclosures: Approximately 500,000 firms offer EFT services to

consumers. However, the average burden hours vary significantly

according to the type of transaction involved and related disclosures.

For example, EFT initial account disclosures are sent to approximately

1 million new accounts per year at an average burden of 1 second per

account, whereas investigations and resolutions of account errors

average 10 minutes per complaint per year.

5. The Consumer Leasing Act, 15 U.S.C. 1667 et seq., requires

accurate disclosure of the costs and terms of leases to consumers.

Regulation M, promulgated by the Board of Governors of the Federal

Reserve System, implements the Consumer Leasing Act (``CLA'').

Regulation M imposes disclosure requirements on all types of lessors,

including leasing companies, finance companies, auto dealers, and some

furniture, appliance, radio and television dealers. The written

disclosures required by Regulation M are specifically required by the

CLA. See 15 U.S.C. 1667a. Similarly, the advertising disclosures

required by Regulation M are also specifically required by the CLA. See

15 U.S.C. 1667c. These disclosures assist consumers in understanding

the terms of leases prior to entering into a lease agreement.

Regulation M implements the disclosure provisions which are mandated by

statute.

Estimate of Information Collection Burden. The FTC has current OMB

approval for 100,000 hours relating to recordkeeping provisions

(control number 3084-0086). The FTC is seeking approval to add 433,400

burden hours relating to disclosure requirements, for a total burden of

533,400 hours.

The number of consumer automobile leases (the largest category of

consumer leases) has increased considerably in recent years and the

current burden estimate reflects this growth. The FTC estimates that

approximately 2,500,000 lease transactions are now subject to the

written disclosure requirements and that providing the required

disclosures takes an average of 10 minutes per lease for a total burden

estimate of 416,000 hours. With respect to lease advertising

disclosures, most (although certainly not all) lease promotions offer

automobile transactions. The FTC estimates that approximately 1 million

lease advertisements per year are affected by the Rule at 1 minute per

advertisement for a total burden estimate of 16,666 burden hours.

[[Page 44352]]

Disclosures: Firms leasing products to consumers make disclosures

for approximately 2,500,000 lease transactions per year at an average

burden of 10 minutes per lease. Approximately 1 million lease

advertisements are placed per year at an average burden of 1 minute per

advertisement.

6. The Truth-in-Lending Act, 15 U.S.C. 1601 et seq. (``TILA''), was

enacted to foster comparison credit shopping and informed credit

decisionmaking by requiring accurate disclosure of the costs and terms

of credit to consumers. Regulation Z, promulgated by the Board of

Governors of the Federal Reserve System, implements the TILA.

Regulation Z requires creditors to calculate and disclose terms that

apply to both open-end credit (e.g., revolving credit or credit lines)

and closed-end credit (e.g., installment financing). Regulation Z

imposes disclosure requirements on all types of creditors in connection

with consumer credit, including mortgage companies, finance companies,

retailers, and credit card issuers, to ensure that consumers are fully

apprised of the terms of financing prior to consummation of the

transaction and, in some instances, during the loan term. It also

imposes advertising disclosure requirements on advertisers of consumer

credit. Among other things, Regulation Z also establishes billing error

resolution procedures and limits consumer liability for the

unauthorized use of credit cards. The vast majority of Regulation Z's

disclosure requirements are expressly mandated by the TILA. See e.g.,

open-end initial disclosures, 15 U.S.C. 1637(a); and open-end periodic

disclosures, 15 U.S.C. 1637(b). In most instances, the disclosure and

other requirements of Regulation Z form the basis both for

administrative enforcement of the TILA by the FTC and other agencies

and for private rights of action by private litigants.

Estimate of Information Collection Burden. The FTC has OMB approval

for 1,000,000 hours relating to recordkeeping provisions (control

number 3084-0088). The FTC is seeking approval to add 40,600,000 burden

hours relating to disclosure requirements, for a total burden estimate

of 41,600,000 hours.

As stated above, the majority of these disclosure provisions are

statutorily required. In recent years Congress has amended the TILA to

include additional requirements. In addition, the various types of

credit accounts affected by the Regulation have greatly increased.

Disclosures: Regulation Z contains a wide variety of disclosure

requirements. It is extremely difficult to quantify the number of

entities and the number of transactions affected by these requirements.

Further, the number of regulated entities and the estimated amount of

time necessary to comply with each requirement varies widely according

to the specific provisions of each requirement. For example, businesses

place approximately 200,000 open-end home equity line of credit

advertisements per year at an average burden of 5 minutes per

advertisement. On the other hand, 4 million residential loan

originations are made per year at 10 minutes per loan.

7. Textile Fiber Products Identification Act. The Textile Fiber

Products Identification Act, 15 U.S.C. 70 et seq. (``Textile Act''),

prohibits misbranding and false advertising of textile fiber products.

The Textile Act Regulations, 16 CFR part 303, which implement the

Textile Act, require accurate disclosure of material product

information in a standardized format. Many of these disclosures are

required by the Textile Act. See 15 U.S.C. 70(b). The disclosure

requirements assist consumers in making informed purchasing decisions.

The Regulations also require manufacturers and marketers who

substitute labels (e.g., resellers) to maintain records, invoices, and

other documents which reflect the bases relied upon in making fiber

content and country of origin disclosures. These recordkeeping

requirements are specifically mandated by the Textile Act. See 15

U.S.C. 70d. The recordkeeping requirements assist the Commission in

enforcing the Regulations.

The Regulations also contain a petition procedure for requesting

the establishment of generic names for textile fibers. The information

submitted is used by the FTC to determine whether the petition should

be granted.

Estimate of Information Collection Burden. The FTC has current OMB

approval for 50 hours relating to procedures for requesting the

establishment of generic names for textile fibers (control number 3084-

0047). The FTC is seeking approval to add 1,291,000 hours for

recordkeeping requirements, which are statutorily required. The FTC is

also seeking to add 14,209,000 hours relating to disclosure

requirements, for a total burden estimate of 15,500,000 hours.

Recordkeeping: Approximately 30,000 textile firms retain required

records at an average burden of 43 hours per year. Disclosures:

Approximately 40,000 textile firms make disclosures for 9,300,000,000

covered products at an average burden of 5.5 seconds per item.

Petitions: Approximately 1 textile firm submits 1 petition per year at

an average burden of 50 hours.

8. Wool Products Labeling Act. The Wool Products Labeling Act, 15

U.S.C. 68 et seq. (``Wool Act''), prohibits misbranding of wool

products. The Wool Act Regulations, 16 CFR part 300, require accurate

disclosure of material information about wool products, including fiber

content and country of origin disclosures. Many of these disclosures

are mandated by the Wool Act. See 15 U.S.C. 68b. The disclosure

requirements assist consumers in making informed purchasing decisions.

The Regulations also require manufacturers and other marketers of

covered products to maintain records that support both claims made on

labels and invoices and savings representations. These recordkeeping

requirements are specifically mandated by the Wool Act, see 15 U.S.C.

68d, and assist the Commission in enforcing the Regulations.

The Regulations also contain a procedure for filing a petition

concerning whether or not representations of the fiber content of a

class of articles are commonly made, or whether or not the textile

content of certain products is insignificant or inconsequential. The

information submitted is used by the FTC to determine whether the

petition should be granted.

Estimate of Information Collection Burden. The FTC has current OMB

approval for 50 hours relating to recordkeeping provisions (control

number 3084-0047). The FTC is seeking to adjust its current

recordkeeping burden estimate to 191,000 hours for these requirements,

which are statutorily required, and to add 2,100,000 hours relating to

disclosure requirements, for a new burden estimate of 2,291,000 hours.

Recordkeeping: Approximately 15,000 wool firms retain records at an

average burden of 12.73 hours per firm. Disclosures: Approximately

20,000 wool firms make disclosures on 1,375,000,000 covered products at

an average burden of 5.5 seconds per item. Petitions: Approximately 1

wool firm submits 1 petition per year at an average burden of 50 hours.

9. Fur Products Labeling Act. The Fur Products Labeling Act, 15

U.S.C. 69 (``Fur Act''), prohibits misbranding and false advertising of

fur products. The Fur Products Regulations, 16 CFR part 301, which

implement the Fur Products Labeling Act, require accurate disclosure of

material information about fur products, including the fur content

[[Page 44353]]

and the country of origin. Many of these disclosures are mandated by

the Fur Act. See 15 U.S.C. 69b. The disclosure requirements assist

consumers in making informed purchasing decisions.

The Regulations also require manufacturers and dealers in fur

products to retain records to support claims made on labels and to

support representations made in advertisements. The recordkeeping

requirements are specifically mandated by the Fur Act, see 15 U.S.C.

69e, and assist the Commission in enforcing the Regulations.

The Regulations also provide a procedure for exemption from certain

disclosure provisions under the Act.

Estimate of Information Collection Burden. The FTC has current OMB

approval for 50 hours relating to recordkeeping provisions (control

number 3084-0047). The Commission is seeking approval to adjust its

current recordkeeping burden for these requirements, which are

statutorily required, to 59,000 hours and to add 78,500 hours relating

to disclosure requirements, for a total burden estimate of 137,600

hours.

Recordkeeping: Approximately 7,500 manufacturers and retailers

retain records at an average burden of 48 hours for manufacturers and

12 hours for retailers. Disclosures: Approximately 1,600 fur firms

disclose information at an average burden of 1 hour per firm.

Petitions: Approximately 1 fur firm submits 1 petition per year at an

average burden of 50 hours.

10. The Appliance Labeling Rule, 16 CFR part 305, establishes

testing, reporting, recordkeeping, and labeling requirements, for

manufacturers of certain appliances in disclosing and advertising

information relating to energy consumption of water usage. The Rule's

testing and disclosure requirements assist consumers in comparing the

energy efficiency or consumption of competing products. The Rule also

requires manufacturers to submit relevant data regarding energy or

water usage in connection with the products they manufacture. The

Commission uses this data to compile the ranges of comparability for

covered appliances for publication in the Federal Register. In

addition, the submissions may be used for comparison purposes in

enforcement actions involving alleged misstatements on labels or in

advertisements.

The Rule also requires manufacturers to keep records of test data

to derive information included on the labels. The records may be

requested and used by the Commission for enforcement purposes.

All of the requirements discussed above are specifically imposed by

the Energy Policy and Conservation Act of 1995. See, e.g., 42 U.S.C.

6296(a); 42 U.S.C. 6294(c)(1)(A); 42 U.S.C. 6296(b)(4); and 42 U.S.C.

6296(b)(2).

Estimate of Information Collection Burden. The FTC seeks approval

of 2,600 hours for these recordkeeping and reporting provisions, which

are statutorily imposed, and 923,400 hours for these disclosure

provisions, which are also statutorily imposed, for a total burden

estimate of 926,000 hours.

The Rule contains a wide variety of recordkeeping and disclosure

requirements. The number of regulated entities and the estimated amount

of time necessary to comply with each requirement varies widely

according to the specific provisions of each requirement. For example,

the test procedure for dishwashers requires an estimated 2 hours for

each of 70 basic models for a total burden of 140 hours. On the other

hand, the test procedure for central air conditioners requires an

estimated burden of 24 hours multiplied by 2 units tested for each of

1,500 basic models for a total burden of 72,000 hours.

11. The Fuel Rating Rule, 16 CFR part 306, establishes standard

procedures for determining, certifying and disclosing the octane rating

of automotive gasoline and the automotive fuel rating of alternative

liquid automotive fuel. These requirements are specifically mandated by

the Petroleum Marketing Practices Act. See 15 U.S.C. 2822(a)-(c). The

fuel rating determination, certification and labeling requirements

establish a framework that provides consumers with reliable,

comparable, and readily available information about the fuel ratings of

similar types of fuel.

The Rule also requires refiners, producers, importers, distributors

and retailers to retain records of delivery tickets, letters of

certification or tests upon which automotive fuel ratings are based.

The primary purpose of the Rule's recordkeeping requirements is to

preserve evidence of automotive fuel rating certification for

enforcement purposes.

Estimate of Information Collection Burden. The FTC has current OMB

approval for 19,000 hours relating to recordkeeping provisions (control

number 3084-0068). The FTC is seeking approval to add 24,000 burden

hours for disclosure requirements, which are specifically required by

statute, for a total burden of 43,000 hours.

Recordkeeping: Approximately 24,000 automotive fuel industry

members retain records at an average annual burden of 6 minutes per

industry member. Disclosures: Approximately 190,000 automotive fuel

industry members make required disclosures at an average annual burden

of 1 hour per industry member.

12. The Alternative Fuel Rule, 16 CFR part 309, establishes uniform

labeling requirements for alternative fuels and alternative fueled

vehicles. These disclosures provide consumers with reliable and

comparable information about the fuel ratings of similar types of fuel

and alternative fueled vehicles. The Rule also requires affected

entities to retain records relating to representations made about fuel

ratings for non-liquid alternative fuels and estimated cruising ranges

and emission certification standards for alternative fueled vehicles.

The primary purpose of these recordkeeping requirements is to preserve

evidence of compliance with the Rule.

Estimate of Information Collection Information. The Commission has

current OMB approval for 159 hours relating to recordkeeping provisions

(control number 3084-0094). The Commission is revising its

recordkeeping burden from 159 to 189 burden hours. The Commission is

also seeking approval to add 22,167 burden hours relating to disclosure

requirements, for a new burden total of 22,400 hours.

Recordkeeping: Approximately 1,658 automotive fuel industry members

retain records at an average annual burden of 6 minutes per industry

member. Disclosures: These requirements vary according to the type of

disclosure required and the members of the automotive fuel industry

affected. For example, approximately 350 industry members are affected

by the fuel rating certification requirements for non-liquid

alternative fuels at an estimated annual burden of 24 hours per

industry member for a total burden of 8,400 hours. The burden for the

same industry members to make a fuel rating determination is estimated

at 2 hours per industry member for a total burden of 700 hours.

13. The ``900'' Number Rule, 16 CFR part 308, establishes

requirements for advertising and operating pay-per-call services. The

Rule also establishes procedures for billing and collecting charges for

these services. The primary purpose of the Rule is to assist in

preventing unfair and deceptive acts or practices by ensuring that

consumers are informed of cost and other material information prior to

calling 900 numbers; to provide consumers with adequate billing

information subsequent to calling 900 numbers; and to establish a

mechanism for disputing charges for

[[Page 44354]]

900 number calls. The advertising, preamble, and billing statement

disclosures are specifically mandated by the Telephone Disclosure and

Dispute Resolution Act. 15 U.S.C. 5701 et seq. (``TDDRA''). The TDDRA

also requires the rules under the billing dispute resolution portion of

the Rule to be substantially similar to the requirements imposed under

the Truth-in-Lending Act and Fair Credit Billing Acts. 15 U.S.C.

5721(a)(2).

In addition, any common carrier who provides telecommunication

services to a provider of pay-per-call services is required to provide

the Commission with financial information and other records relating to

the arrangement. This requirement assists in the enforcement of the

Rule by permitting the Commission to obtain information from telephone

companies that provide transmission services to 900 number providers.

Estimate of Information Collection Burden. The FTC seeks approval

for 125 burden hours relating to reporting requirements and 3,241,000

burden hours relating to disclosure requirements, for a total burden

estimate of 3,241,200.

Reporting: Approximately 25 common carriers make records available

to the Commission at an average burden of 5 hours per submission.

Disclosures: Approximately 20,000 information providers place

approximately 3 advertisements per year at an average burden of 1 hour

per provider. Approximately 60,000 pay-per-call services are required

to make disclosures in the preamble at an average burden of 10 hours

for each preamble. Approximately 20,000 information providers are

required to ensure that disclosures appear on each billing statement at

an average burden estimate of 12 hours per provider.

14. The Care Labeling Rule, 16 CFR part 423, requires manufacturers

and importers to attach a permanent care label to all covered textile

clothing. Also, manufacturers and importers of piece goods used to make

textile clothing must provide the same care information on the end of

each bolt or roll of fabric. These labels disclose information about

washing or dry cleaning the apparel or fabric. These requirements

assist consumers in making purchasing decisions and in deciding what

method to use to clean their apparel. Professional cleaners also use

this information to clean apparel in a manner that avoids damage to the

garment. The Rule also provides a procedure whereby a member of the

industry may petition the Commission for an exemption for products that

are claimed to be harmed in appearance by the requirement for a

permanent label.

Estimate of Information Collection Burden. The FTC is seeking

approval for a burden estimate of 3,985,000 hours relating to

disclosure requirements.

Disclosures: Approximately 25,000 apparel manufacturers and

importers make disclosures at an average burden of 159 hours per

company per year. Petitions: Only 1 petition, subsequently withdrawn,

has been filed in recent years. An estimated 50 hours for preparing a

petition has been incorporated into the hours calculated for disclosure

requirements.

15. The Negative Option Rule, 16 CFR part 425, establishes

disclosure requirements for sellers who use negative option plans.

Negative option plans require the consumer to affirmatively decline an

offer of merchandise or else have the merchandise shipped

automatically. The Rule requires sellers of these plans to disclose the

material terms of the plan and cancellation procedures in promotional

materials. This information allows consumers to weigh the benefits and

burdens of negative option plans.

Estimate of Information Collection Burden. The FTC is seeking

approval for a burden estimate of 15,500 hours relating to disclosure

requirements.

Disclosures: Approximately 124 negative option plan providers

comply with disclosure requirements at an average burden of 125 hours

per company.

16. The Amplifier Rule, 16 CFR part 432, establishes requirements

for disclosing power output specifications in advertising. The Rule

also specifies test conditions to be used to obtain this information.

Consumers use the information to make comparisons among the types and

brands of audio equipment.

Estimate of Information Collection Burden. The FTC is seeking

approval for a burden estimate of 2,700 hours relating to disclosure

requirements.

Disclosures: Approximately 300 new products must be tested annually

at an average burden of 1 hour per product. Approximately 1200 magazine

advertisements appear each year for an average burden of 2 hours per

advertisement.

17. The Mail Order or Telephone Merchandise Rule, 16 CFR part 435,

requires mail or telephone order merchants to substantiate any shipment

representation; to notify the consumer of, and obtain consent for, any

shipment delay; and to make prompt and full refunds when the consumer

exercises a cancellation option or the merchant is unable to meet the

Rule's other requirements. The disclosure requirements ensure that

consumers are provided with reliable shipment information in the

solicitation of mail or telephone order sales and in notifications of

delays in shipment.

Estimate of Information Collection Burden. The FTC is seeking

approval for a burden estimate of 16,213,300 burden hours relating to

disclosure requirements.

Disclosures: Approximately 70,560 mail and telephone order

merchants make required disclosures at an average burden of 230 hours

per merchant per year.

18. The Franchise Rule, 16 CFR part 436, requires franchisors and

franchise brokers to furnish a disclosure document to prospective

franchisees prior to sale. This document contains information on 20

subjects relating to the franchisor, the franchisor's business, and the

nature of the proposed franchise relationship. Franchisors must also

disclose additional information if they make any claim about actual or

potential sales, income, or profits for a prospective franchisee. These

disclosures assist consumers in making informed investment decisions

and otherwise verifying the representations of the franchisor.

Estimate of Information Collection Burden. The FTC is requesting

approval for an estimated burden of 36,200 hours relating to disclosure

requirements.

Disclosures: Approximately 3,613 franchisors and franchise brokers

make required disclosures at an average burden of 10 hours per firm.

19. The Used Car Rule, 16 CFR part 455, requires used car dealers

to disclose information about warranty coverage, if any, and the

mechanical condition of used cars on a one page, two-sided Buyers

Guide, which must be placed in the window of the car. This information

allows consumers to make informed purchasing decisions by evaluating

whether a warranty is offered, the terms of the warranty, and the

condition of the car.

Estimate of Information Collection Burden. The FTC is requesting

approval for an estimated burden of 2,304,100 hours relating to

disclosure requirements.

Disclosures: Approximately 80,000 used car dealers make required

disclosures at an average burden of 29 hours per dealer.

20. The R-Value Rule, 16 CFR part 460, requires that manufacturers

and sellers disclose the R-value (degree of resistance to the flow of

heat) of a home insulation product prior to sale. This information is a

measure of how well

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the product will perform as an insulator and allows consumers to

compare products and make cost-effective decisions about purchasing

home insulation products.

The Rule also requires home insulation manufacturers and

laboratories to maintain records of tests conducted to determine the R-

value of each insulation product. Sellers who make representations

concerning fuel or energy cost savings are required to maintain records

to substantiate these claims. These recordkeeping requirements assist

the Commission in enforcing the Rule.

Estimate of Information Collection Burden. The FTC is requesting

approval for an estimated burden of 366,056 hours relating to

disclosure requirements and 275 hours relating to recordkeeping

requirements, for a total estimated burden of 366,400 hours (rounded).

Disclosures: 150 manufacturers, 1,500 installers, 137,000 new home

sellers, and 25,000 retailers make disclosures at an average burden of

23 hours for manufacturers, 20 hours for installers, 2 hours for new

home sellers, and 2 hours for retailers. Recordkeeping: 150

manufacturers and 1,500 installers keep records at an annual average

burden of 1 hour per manufacturer and 5 minutes per installer.

21. The Fair Packaging and Labeling Act, 15 U.S.C. 1450, (``FPLA'')

was enacted to eliminate consumer deception concerning product size

representations and package content information. The Regulations which

implement the FPLA, 16 CFR part 500, establish requirements for the

manner and form of labeling consumer commodities. Section 4 of the FPLA

specifically requires packages or labels to be marked with: (1) A

statement of identity, (2) a new quantity of contents disclosure, and

(3) the name and place of business of a company that is responsible for

the product.

Estimate of Information Collection Burden. The FTC is seeking

approval for an estimated burden of 12,000,000 hours relating to

disclosure requirements.

Recordkeeping: Most of the records that manufacturers, packagers,

distributors, and retailers of consumer commodities are required to

retain would otherwise be kept in the normal course of business.

Disclosures: Approximately 1,200,000 manufacturers, packagers,

distributors, and retailers of consumer commodities make disclosures,

most of which are statutorily required, at an average burden of 10

hours per company.

22. The Consumer Product Warranty Rule, 16 CFR part 701, provides

that, where written warranties are provided, the warranties must

disclose certain material facts regarding their terms and conditions.

The purpose of the Rule is to prevent deception by providing consumers

with information to assess written warranty terms.

Estimate of Information Collection Burden. The FTC is seeking

approval for an estimated burden of 34,000 burden hours associated with

these disclosure requirements.

Disclosures: Approximately 4,241 warrantors of products make

required disclosures at an average burden of 8 hours.

23. The Pre-Sale Availability Rule, 16 CFR part 702, requires that

the terms of written warranties for consumer products be made available

to consumers prior to purchase. Manufacturers are required to provide

materials sufficient for retailers to meet their obligations. The Rule

also contains requirements for disclosing the availability of warranty

information in catalogues and door-to-door sales.

Estimate of Information Collection Burden. The FTC is seeking

approval for an estimated burden of 2,759,700 hours associated with

these disclosure requirements.

Disclosures: Approximately 422,100 small retailers, 6,552 large

retailers, 4,095 small manufacturers, and 146 large manufacturers make

required disclosures at an average burden of 6 hours for small

retailers, 26 hours for large retailers, 12 hours for small

manufacturers, and 52 hours for large manufacturers.

24. The Informal Dispute Settlement Procedures Rule, 16 CFR part

703, provides for disclosures in warranties when warrantors offer

dispute settlement resolution procedures in a written consumer product

warranty. The Rule also provides for dispute resolution information to

be provided to consumers upon request. The disclosure requirements

allow consumers to be fully informed regarding the warranty's dispute

settlement procedures.

The Rule also requires affected entities to retain individual

records for each dispute; indexes that categorize disputes by product

model, and show the extent to which the warrantor has abided by

decisions of the resolution process; and statistical summaries that

classify disputes according to various status and final disposition

categories.

Affected entities must conduct an annual audit of their dispute

resolution procedures and submit a report to the Commission. These

requirements assist the Commission in enforcing the Rule.

Estimate of Information Collection Burden. The FTC is requesting

approval for an estimated burden of 500 disclosure hours and 6,456

recordkeeping hours, for a total burden estimate of 7,000 hours

(rounded).

Disclosures: Approximately 2 warrantors who offer informal dispute

settlement procedures make required disclosures at an average burden of

250 hours. Recordkeeping: Approximately 2 warrantors who offer informal

dispute settlement procedures make required disclosures at an average

burden of 3,228 hours.

25. FTC Administrative Activities. These information collection

requests constitute administrative or procedural matters. Each

specifies information to be submitted voluntarily to the Commission by

persons who wish to do business with or receive some benefit from the

agency. Because of the limited burden imposed, these requests for OMB

approval have been combined into a single item. These requests relate

to: (1) FTC procurement activities; (2) the document order form used by

the FTC public reference branch; (3) applications and notices to the

Commission; and (4) rules governing claims under the Equal Access to

Justice Act.

The FTC seeks to modify item (3) to include applications and

notices to the Commission contained in other rules (generally in Parts

I, II, and IV of the Commission's rules of practice) that may, or may

not, constitute the ``collection of information.'' See, e.g., 16 CFR

4.8(e) (requests for a waiver of costs for obtaining Commission

records). Because these provisions are generally imposed during the

conduct of federal criminal, civil, or administrative action with

respect to a specific party they would normally not be covered by the

PRA. See 5 CFR 1320.22. Any requirements that are not imposed in this

context are extremely rare, and the de minimis burden associated with

them can be easily incorporated into the 50 burden hours already

requested in this section.

The FTC is also requesting approval to delete three currently

approved requests from item (3)--the procedure for establishing generic

names under the Textile Act Regulations and the procedures for certain

exemptions under the Wool and Fur Act Regulations. The FTC has prepared

separate submissions for these regulations. See item numbers 7, 8 & 9,

infra. In 1993, the total burden estimate for the Textile, Wool, and

Fur Act Regulations was approximately 50 hours. Even though the FTC has

deleted these hours, the total burden associated with item (3) has not

changed because

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of the additional hours associated with the new request for clearance

of notices and applications to the Commission.

Estimate of Information Collection Burden. The FTC is requesting an

estimated burden of 2,300 hours (rounded) relating to administrative

activities. This figure is unchanged from the Commission's current

approval (control number 3084-0047). Various states, companies, and

individuals make requests pursuant to this item for a total burden of

2,300 hours.

Benjamin I. Berman,

Acting Secretary.

[FR Doc. 95-21165 Filed 8-24-95; 8:45 am]

BILLING CODE 6750-01-M